Just a thought, and I could be completely missing something, but before the past two years, these Option-ARM’s had an excellent performance history. Primarily, because they were only used by financially secure “investor types” who were only using them to increase the leverage of their cash. These types of people NEVER went into default as they did have the money to cover the loan and resets never truly affected them.

So, the track record on these loans don’t look scary at all. These loans have NEVER been tested on the general public like they have lately. I’m quite sure those ratings will change when the new numbers start to filter in.